Reports

2022-11-14

Daily Market Monitor 14-11-2022

Tadawul Review:

Tadawul All-Share Index (TASI) snapped its three-day losing streak by rising +35 points (+0.3%) to close at 11,247 levels. The index gains were , however, modest relative to market moves seen in the region over the weekend. The index made a relatively strong start and rose to an intraday high of 135ppoint. before paring most of intraday gains . In general, 12 out of 20 sectors closed in the green zone, while 116 shares rose and 86 fell. Banks sector contributed the most to the index's rise (+0.5%), followed by Energy (+0.6%) and Utilities (+1.5%), as they contributed to the index's rise with a total of 29 points. Stock-wise, Saudi National Bank (+2.9%), Aramco (+0.6%), and ACWA Power (+2.3%) contributed most to the stability and rise of the index. The trading volume activity declined by 7% DoD to reach 120mn shares, while the trading value increased by 40% DoD to reach SAR6.7bn (PIF sold 10% of its Tadawul Group holdings, accounting for SAR2.3bn of the trading value). The index may look to make further recovery in coming sessions.

 

 

Market Wrap International:

Following a strong close to a preceding week, the global markets will likely go through a phase where investors will look for new economic data to substantiate the market view of easing inflation and possible slow-down in Fed interest rate cycle. Furthermore, the latest updates from China on relaxation measures for property sector and easing of COVID-19 restrictions will also find traction among investors. In the U.S, the key data to watch for include Production Price Inflation for Oct, housing market and retails sales which may put a strong two-day performance of the major indices to test.

In Europe, a number of important events and data points are lined for the next week which include CPI, GDP, and unemployment data for the region for the month of Oct/3Q. Besides, ECB officials are also due to speak during the week. Given the latest moves in the currency and bond markets, investors will look for hints for possible tweaking of policy guideline unveiled by the central bank recently. In U.K, the new government is scheduled to release its economic plan on 17th Nov. Market’s reaction to future measures remains crucial. Three key areas highlight in the media reports include; higher coverage of top tax, windfall gains for energy, and higher taxes for financials.

In Asia, China will once again remain in the limelight for at least three reasons, (i) US-China relationship in the backdrop of G20 conference, (ii) a 16-point relaxation measures for the property and ‎‎(iii) easing of COVID-19 restrictions. Currencies of emerging markets in the region has made a strong recovery in the past two sessions while growth outlook for the region is improving. Low valuation and marginal positive macro news-flow may allow markets in the region to make further gains.

Daily Market Monitor 14-11-2022